Lithium Argentina's Cauchari-Olaroz aims to triple production by 2029

By Lucila Sigal

Lithium Argentina's Cauchari-Olaroz project in northern Argentina is aiming to produce 85,000 metric tons of the battery metal annually by around 2029, more than triple last year's output, said Executive Vice President Ignacio Celorrio.

The site is one of six lithium projects operating in Argentina, the world's fourth-largest exporter of the metal used in electric car batteries.

Cauchari-Olaroz, in the so-called Lithium Triangle that spans Argentina, Chile and Bolivia, is being developed by Lithium Argentina LAR, listed in Canada and the U.S., along with China's Ganfeng Lithium 002460.

In 2024, the project produced about 25,000 tons of battery-grade lithium carbonate, and in 2025 it is expected to reach between 30,000 and 35,000 tons, Celorrio said on the sidelines of a lithium conference on Tuesday in Buenos Aires.

Currently, 80% of the project's production is exported to China and the remainder goes to Thailand, according to off-take agreements with Ganfeng and Bangchak, a Thai bank that provided financing.

In August, Lithium Argentina and Ganfeng announced a new joint venture called Pozuelos-Pastos Grandes to consolidate three projects in the Salta province - Pastos Grandes, Sal de la Puna and Pozuelos - which will have the capacity to produce 150,000 tons of lithium annually. Lithium Argentina is working on a feasibility study and hopes to begin construction in 2026.

Both Cauchari-Olaroz and Pozuelos-Pastos Grandes will apply to Argentina's Large Investment Incentive Regime (RIGI) by the end of the year, Celorrio said. This regime provides tax benefits and other advantages for investments exceeding $200 million, and the government hopes that it attracts much-needed foreign currency.